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Ladue's Soaring Home Values and High Ownership Rates: A Suburban Success Story
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Ladue, Missouri, a small affluent city located in St. Louis County, is known for its prestigious residential areas and high-quality schools. With a population of 9,614 in 2022, Ladue has consistently maintained a high rate of homeownership and experienced significant growth in average home prices over the past decade. The city has also seen relatively stable average rent prices, albeit with some fluctuations in recent years.
Homeownership in Ladue has remained exceptionally high, ranging from 96% to 99% between 2013 and 2022. This strong preference for homeownership aligns with the substantial increase in average home prices during the same period. In 2013, the average home price in Ladue was $742,682, which rose steadily to reach $1,075,047 by 2022, representing a remarkable 44.8% increase over nine years. The most significant annual jump occurred between 2020 and 2021, with average home prices rising from $877,470 to $963,805, an increase of 9.8% in a single year.
The relationship between federal interest rates and homeownership rates in Ladue appears to be less pronounced than in many other areas, likely due to the city's affluent nature. Despite fluctuations in interest rates, homeownership remained consistently high. For instance, when interest rates dropped from 2.16% in 2019 to 0.38% in 2020, homeownership actually decreased slightly from 99% to 97%. This suggests that Ladue's homeownership trends are influenced more by local factors and the desirability of the area than by national interest rate movements.
Renter percentages in Ladue have remained extremely low, ranging from 1% to 4% between 2013 and 2022. The average rent prices, available from 2013 onwards, show some variability. In 2013, the average rent was $1,750, which remained stable until 2016 when it dropped to $1,624. It then fluctuated, reaching a peak of $1,816 in 2019 before decreasing to $1,498 in 2022. The low percentage of renters in Ladue suggests that changes in rent prices may have limited impact on the overall housing market in the city.
As of 2024, the average home price in Ladue has continued its upward trajectory, reaching $1,178,698. This represents a 9.7% increase from the 2023 average of $1,128,426. Concurrently, federal interest rates have risen to 5.33% in 2024, up from 5.02% in 2023. Despite these higher interest rates, Ladue's housing market appears to remain robust, with home prices continuing to appreciate.
Looking ahead, based on the historical trends and current market conditions, it's projected that average home prices in Ladue will continue to rise over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average home prices could potentially reach around $1.4 million by 2029. Average rent prices, which have shown more volatility, may stabilize or see modest increases, potentially reaching around $1,700 to $1,800 per month in the same timeframe.
In summary, Ladue's housing market is characterized by exceptionally high homeownership rates and steadily increasing average home prices. The city's real estate market has demonstrated resilience in the face of changing economic conditions, with home values continuing to appreciate even during periods of higher interest rates. The rental market, while small, has shown more variability in pricing. These trends reflect Ladue's status as a desirable, affluent suburb with a strong preference for homeownership among its residents.
